Despite the initial decline, tech stocks recover in value over the last few weeks. This is attributed to several factors including resistance to inflation, and revival in buying activity from retail investors.
The NYSE FANG+TM index which includes Meta, Apple, Amazon.com, Netflix, and Alphabet posted their best six-day performance on Tuesday rising 22%.
In Hong Kong, tech giants’ stocks surged 36% since the decline last Tuesday. In Japan, tech stocks rose for seven straight sessions and Europe’s tech stocks enjoyed gains.
Growth stocks also surged despite the benchmark 10-year Treasury yield hitting its highest since 2019.
“In the face of rising 10-year yield, (investors are) leaving bonds going toward equities, and they are going toward the growth areas that had been beaten up, but I question whether this is going to last,” said Sam Stovall, chief investment strategist of CFRA Research in New York.
The tech crackdown in China has raised concerns about a decline in the country’s tech stock. The tech stocks have however had a strong rebound.
For more information, read the original story in Reuters.